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Train maker Alstom puts 1,300 jobs on the line after HS2 cancellation

Alstom logo on Savigliano factory building

More than 1,300 employees at Alstom's train factory in Derby risk losing their jobs due to a shortage of new orders. 

The French manufacturer the facility had “no confirmed workload beyond the first quarter of 2024.”

As a result, the firm started consultations for potential redundancies. 

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The company said it needed to raise cash from investors.

Among the affected workforce, 550 permanent positions and 780 contractors are at risk.

Should the closure occur, it would signify the end of train production in Derby for the first time since 1876, marking a significant historical shift. 

Over the years, the facility has played a crucial role in building rolling stock for various UK railways, the London Underground, and, most recently, London's Elizabeth line.

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Alstom aims to reduce its debt by €2 billion to address its financial challenges through asset sales and substantial cost-cutting measures.

Alstom hit by HS2 cancellation

The potential job cuts in Derby come despite six months of discussions with the UK government. 

Alstom has been grappling with uncertainties surrounding an order for new trains for HS2.

The problems come after Rishi Sunak cancelled the northern leg of the high-speed line proposed from London to Manchester.

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The trains were planned to be built in Derby and at a Hitachi factory in Newton Aycliffe, County Durham.

Alstom employs 6,000 people in the UK and 2,000 at the Litchurch Lane factory in Derby.

An Alstom spokesperson said: “No committed way forward has yet been found and therefore it is with deep regret that we must now begin to plan for a significant reduction in activity at Derby by entering a period of collective consultation on potential redundancies at Litchurch Lane. 

“We will fully support our dedicated colleagues during this exceptionally difficult time.”

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